According to a report from ambcrypto.com, Christian Dior and Louis Vuitton have revealed their plans on entering the blockchain sector by implementing a platform that would allow these brands in the verification of their Luxury Goods.
On 16th May, a formal announcement came from ConsenSys about their blockchain network known as AURA. AURA would enable consumers to trace the authenticity and history of luxury goods that were developed through a partnership with Moët Hennessy-Louis Vuitton (LVMH) and Microsoft. The initial brands on the platform are LVMH’s Louis Vuitton and Parfums Christian Dior. Other brands from LVMH are also in discussion for onboarding as well as from other luxury groups that are planning the same.
The news release added:
“AURA makes it possible for consumers to access the product history and proof of authenticity of luxury goods — from raw materials to the point of sale, all the way to second-hand markets.”
In 2016 the Organisation for Economic Co-operation and Development (OECD) estimated that nearly 2.5% of global imports or nearly 500 Billion dollars worth of counterfeit and pirated goods were imported. In the Europian Union, the figure goes as high as 5%. OECD also published research into the product groups that were affected the most. The highest effect was on Footwear which was followed by knitted clothing and leather goods. These three categories are the top three groups of fake goods that are seized due to counterfeit or piracy. Travellers to France are familiar with the sight of officials inspecting Louis Vuitton handbags while tourists depart to ensure that the product they carry is not a counterfeit or a fake copy of the original.
Along with allowing users to be able to authenticate a product themselves, customers can also use an application on their smartphones that will enable them to view the story of the luxury item including the design and its raw materials, as well as the process manufacturing and distribution that goes into it, with information on how the user should care for the product and about the warranties that the products may carry.
AURA aims to implement a consortium model so that other luxury brands can become a member. Each participant can choose the emphasis on whether that’s on tracing the source of raw materials or customer loyalty.
“AURA is a groundbreaking innovation for the luxury industry,” said Ken Timsit, Managing Director of ConsenSys Solutions. “ConsenSys is proud to contribute and to work with LVMH on an initiative that will serve the entire luxury industry, protecting the interests, integrity, and privacy of each brand, leveraging Ethereum blockchain technology in a truly decentralized way.”
The private permissioned platform AURA is built upon the enterprise version of ethereum i.e. JP Morgan’s Quorum. Every item is assigned with a unique or non-fungible token using the ERC721 standard. The ERC721 is the same standard that popular blockchain game CryptoKitties also uses.
Microsoft Azure is the hosting partner, and ConsenSys was one of the main AURA technology partners. ConsenSys is also partner to the komgo trade finance consortium.
Anti-counterfeit applications are one of blockchain’s strongest use cases, and it’s being applied in numerous industries. These include pharmaceuticals, aerospace, ticketing, computer disks, and premium coffee brands.